Some students of economic conditions feel the deterioration in government finances at the federal, state, and local level is frightening. Tax revenues have fallen and government expenditures continue to rise. Now, throw in the possibility, in some economic downturn, of the Federal Government being forced to pay on multiple financial guarantees, such as insurance claims for busted pensions and bank failures.
Add to that the rising costs for unemployment, welfare and early retirements. Some feel hard times are coming, not just for the people and for business, but also for the government. For you as an individual, it is time for wise debt management.
"Expansion of Credit does lead to a boom at first, it is true, but sooner or later this boom is bound to crash and bring about a new depression." (Ludwig von Mises) This is because booms create excesses that eventually are corrected by economic reality, i.e. adjustments in debt, building, and employment contractions, etc.
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